Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects
To provide mortgage insurance to HUD-approved lenders for the purchase or refinancing of existing multifamily housing projects, whether conventionally financed or subject to federally insured mortgages at the time of application for mortgage insurance. The program allows for the long term mortgages that can be financed with Ginnie Mae Mortgage-Backed Securities.
General information about this opportunity
Last Known Status
Office of Housing-Federal Housing Commissioner, Department of Housing and Urban Development
Type(s) of Assistance Offered
F - Guaranteed/Insured Loans
National Housing Act, Section 223(f), as amended; Housing and Community Development Act of 1974, as amended, Public Law 93-383. 12 U.S.C. 1715n.
Who is eligible to apply/benefit from this assistance?
Mortgagors may be either profit and non-profit.
All persons are eligible to occupy such projects subject to normal occupancy restrictions.
Documentation regarding the characteristics of the property and the qualifications of the purchaser or existing mortgagor in refinance projects are assembled by the mortgagee and submitted with the application. Management plan must be submitted at time of application for commitment.
What is the process for applying and being award this assistance?
Preapplication coordination is required. Environmental impact information is not required for this program. An environmental impact assessment is not required for this listing. This program is excluded from coverage under E.O. 12372.
2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. The applicant will submit a formal application for conditional or firm commitment through a HUD approved mortgagee.
The local HUD Multifamily Hub and Program Center reviews the application to determine proposal eligibility. If the project meets program requirements, the local HUD Multifamily Hub and Program Center issues the commitment to the lender to insure the project.
Approval/Disapproval Decision Time
How are proposals selected?
How may assistance be used?
Section 223(f) insures lenders against loss on mortgage loans. These loans may be used to purchase or refinance existing multifamily housing projects. The property must contain at least 5 residential units with complete kitchens and baths and have been completed or substantially rehabilitated for at least 3 years prior to the date of the application for mortgage insurance. The program allows for non-critical repairs that must be completed within 12 months of loan closing. Projects requiring substantial rehabilitation are not acceptable under this section and may not involve the replacement of more than one major system. The remaining economic life of the project must be long enough to permit a ten-year mortgage. The mortgage term cannot exceed 35 years or 75 percent of the estimated life of the physical improvements, whichever is less. Davis Bacon prevailing wage requirements do not apply to this program. The applicable percentage of the estimated value of the property after completion of repairs and improvements. 90% - for Section 202/202/8 Direct Loans, 87% - for projects with 90% or greater rental assistance, 85% for projects that meet the definition of Affordable Housing, and 83.3% for market rate projects.
What are the requirements after being awarded this opportunity?
The Department of Housing and Urban Development reserves the right to audit the accounts of either the mortgagee or mortgagor in order to determine their compliance and conformance with HUD regulations and standards.
Mortgagees are required to service and maintain records in accordance with acceptable mortgage practices of prudent lending institutions and the HUD regulations.
Other Assistance Considerations
Formula and Matching Requirements
Statutory formula is not applicable to this assistance listing.
Matching requirements are not applicable to this assistance listing.
MOE requirements are not applicable to this assistance listing.
Length and Time Phasing of Assistance
The mortgage term should not be less than 10 years nor should it exceed the lesser of 35 years or 75 percent of the estimated remaining economic life of the physical improvements. Over the life of the loan
Who do I contact about this opportunity?
Regional or Local Office
Persons are encouraged to communicate with the nearest local HUD Multifamily Hub or Program Center listed at http://www.hud.gov/offices/hsg/mfh/mfbroch/hubs_pcs.cfm or the nearest HUD Field Office listed in Appendix IV.
451 Seventh Street SW
Washington, DC 20410 US
(Guaranteed/Insured Loans) FY 13$7,700,000,000.00; FY 17 FY 14 est $7,000,000,000.00; FY 15 est $70,000,000,000.00; FY 16
Range and Average of Financial Assistance
Regulations, Guidelines and Literature
Fact Sheet, Section 223(f) Mortgage Insurance; 24 CFR 200, HUD Handbook 4565.1, Mortgage Insurance for the purchase or Refinancing of Existing Multifamily Housing Projects, Section 223(f) available on www.hudclips.org. The Multifamily Accelerated Processing (MAP) guide may be found at http://www.hud.gov/offices/hsg/mfh/map/maphome.cfm.
Examples of Funded Projects